We're pretty impressed with news organizations who have simultaneously overstated and underestimated the financial impact of COVID-19 on healthcare providers.
As we mentioned in the last Five To Save, much of the media focus on hospital operations during the pandemic has centered around the steps facilities have had to take to remain able to serve their communities responsibly. (The number of furloughs has continued to tick up, by the way.)
The reduction and shutdown of highly profitable elective procedures has created ripples that those outside of healthcare and supply chain's daily operations aren't likely to notice.
- Hospital merger and acquisition activity has, in most cases, come to a screeching halt. And, not surprisingly, many expansion and construction projects have been put on hold or abandoned.
- While some hospitals - particularly larger networks - might be able to pile government bailouts on top of sustained profitability, economic recovery - particularly at small facilities - might be a long time coming.
- And that's because potential patients - especially at hospitals that were never overwhelmed by coronavirus cases - are likely scared of seeking out care.
- Confusion about who, exactly, is paying for COVID-19 testing and treatment hasn't helped.
- So is it time to rethink budgeting strategies in hospitals and their supply chains in specific?
We've far exceeded our own budget of five articles for this week. But we're not done yet.
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